About Smarten Power Systems Limited
BUSINESS OVERVIEW
Smarten Power Systems is engaged in the design and assembly of power backup and advanced solar energy products, including Home UPS systems, solar inverters, solar power conditioning units (PCUs), and solar charge controllers. The company also deals in the trading of solar panels and batteries. Products are sold through a domestic distributor network and exported globally (excluding solar panels).
The company generates 76.41% of revenue from domestic sales and 23.59% from exports, operating in 23 Indian states, 2 union territories, and exporting to over 18 countries across the Middle East, Africa, and South Asia.
Key revenue drivers include Home UPS systems, solar inverters/PCUs, solar panels, and batteries.
Driven by a mission to enable a sustainable energy future, Smarten Power Systems focuses on affordable, efficient, and eco-friendly solutions through advanced technology and innovative design. The slogan “Fusion is the Future” reflects the company’s vision of powering households and industries with renewable energy, especially solar power. Expansion into global markets, particularly in Asia, Africa, and the Middle East, remains a strategic priority. The company have workforce of 252 permanent employees as of May 31, 2025. The Banker to the company is ICICI Bank Limited.
INDUSTRY ANALYSIS
India’s Evolving Energy Consumption and Storage Landscape: A Comprehensive Analysis
Global & Domestic Electricity Consumption Trends
According to the International Energy Agency (IEA), global electricity demand is set to grow sharply in 2024 and 2025, with a projected increase of 4% in 2024—the fastest growth rate in two decades, barring post-crisis rebounds. This surge is driven by strong economic activity, greater air conditioning use due to extreme heatwaves, and the rapid adoption of electric vehicles (EVs) and heat pumps.
India's electricity demand has shown considerable dynamism, with daily variability reaching 15% in 2023, a figure expected to triple by 2050. The increasing use of air conditioners, home appliances, and EVs—enabled by rising incomes—is expected to fuel this variability.
In 2024, India is expected to register an 8% increase in electricity demand, sustaining the rapid growth seen in 2023. However, per capita electricity consumption remains only 20% of the EU average, highlighting significant headroom for growth. Intense and prolonged heatwaves—such as the record 24-day event in May 2024—along with expanding industrial activity, led to peak demand reaching 250 GW, with projections pointing to 258 GW by year-end. Demand growth is expected to moderate to 6.8% in 2025, assuming normal weather conditions, but long-term consumption is poised to increase significantly due to ongoing economic and demographic shifts.
India is currently the third-largest electricity producer and consumer, with an installed power capacity of 446.18 GW as of June 2024.
Solar Energy Expansion in India
India’s solar sector has witnessed remarkable growth, with installed solar capacity rising 26-fold in the past nine years to reach 73.32 GW by December 2023. Solar power contributed 16.9% of total installed power capacity and 40.1% of the renewable mix. In FY 2023–24, India added a record 18.48 GW of renewable capacity, marking a 21% year-over-year increase. However, to meet the 2030 target of 500 GW of non-fossil energy, experts suggest India must add at least 50 GW annually.
In Q1 2024 alone, India added 10 GW of solar capacity, a nearly 400% YoY jump, supported by reduced module costs, grid connectivity improvements, and temporary easing of ALMM regulations. Shirdi is set to become Maharashtra’s first solar-powered town, aiming for zero energy bills.
Solar Inverter Market Outlook
Driven by government programs like the Smart Cities Mission and solar subsidies, the solar inverter market is expanding rapidly. As of FY 2022–23, India’s solar inverter market stood at ~2,520 MW, with expectations of 14.4% CAGR growth from 2020 to 2026.
Grid-connected inverters dominate residential and commercial segments, while off-grid inverters remain prevalent in rural electrification.
Home UPS Market in India
India’s home UPS market was valued at $317.8 million in 2023 and is projected to reach $493 million by 2032, growing at a 5% CAGR. The rise in demand is driven by:
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Frequent power outages, especially in rural and semi-urban areas.
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Remote work, online education, and home healthcare, which rely on consistent power.
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Climate-induced disruptions like floods and heatwaves.
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Growing digital adoption in households, increasing the need for uninterrupted power.
The Standby UPS segment dominates with 63.82% market share, due to its affordability, simplicity, and suitability for household usage. Additionally, lead-acid batteries, used in most UPS systems, account for 65.29% market share, favored for their cost-effectiveness, wide availability, and compatibility.
There's also a clear urban-rural divide: urban areas lead with 67.08% market share, but rural regions are expected to grow faster (CAGR of 5.7%) due to electrification initiatives and increasing awareness of power backup benefits.
Rooftop Solar & Government Schemes
The PM Surya Ghar: Muft Bijli Yojana, launched in February 2024 with a budget of ₹75,021 crore, aims to install rooftop solar for 1 crore households, offering up to 300 units/month of free electricity. Key features include:
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Subsidies up to ₹78,000 per household.
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Ability to sell surplus electricity back to the grid.
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Subsidies for RWAs and group housing societies for EV-compatible solar setups.
As of May 2024, 12.12 GW of rooftop solar capacity has been installed. In FY 2023–24, 2,866 MW was added.
Lithium-ion Battery (LIB) and Energy Storage Market
India is targeting 50% non-fossil-based installed capacity by 2030 and aims to cut emission intensity by 45% from 2005 levels. Energy Storage Systems (ESS) are pivotal in addressing the variability of renewable sources like solar and wind.
The lithium-ion battery market is expected to grow at a CAGR of 50%, rising from 20 GWh in 2022 to 220 GWh by 2030. The market will benefit from:
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Advanced Chemistry Cell (ACC) manufacturing.
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Government backing on both supply and demand sides.
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Recycling potential, estimated at 22–23 GWh by 2030.
India’s lithium-ion industry is set to grow from 2.9 GWh in 2018 to 132 GWh by 2030 (35.5% CAGR). The discovery of large lithium reserves in Jammu & Kashmir and Rajasthan may enable domestic supply to meet up to 80% of the country’s demand.
Energy storage is essential to meet India's projected 334 GW peak electricity demand and 2,229 BU generation need by 2030.
Conclusion
India's energy ecosystem is undergoing a transformative shift driven by:
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Electrification of the economy and homes.
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Massive investments in solar and renewable energy.
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Rising demand for reliable backup solutions like UPS and energy storage.
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Government-backed initiatives accelerating solar adoption and battery production.
This multi-faceted growth signals a strong transition toward clean, stable, and self-reliant power systems, positioning India as a global leader in the green energy transition.
BUSINESS STRENGTHS
1. Innovative Product Portfolio:
Offers over 372 SKUs across five core categories—Home UPS systems, solar inverters, PCUs, solar charge controllers, solar panels, and batteries. Products serve diverse customer segments, ranging from individual households to commercial solar projects.
2. Robust R&D Capabilities:
A dedicated R&D team of seven experts in power electronics drives product innovation, focusing on efficiency, quality, and reliability. The team brings over a decade of experience in power conversion, inverter design, and energy storage systems, maintaining the company’s competitive edge.
3. Wide Distribution & Service Network:
A well-established presence in 23 states and 2 union territories, supported by 380 distributors and 52 service centres ensures strong market accessibility and effective after-sales service.
4. Experienced Leadership Structure:
A specialized leadership framework assigns directors to specific operational domains such as R&D, manufacturing, sales, and global expansion, enabling focused execution, strategic agility, and operational excellence in a competitive environment.
BUSINESS STRATEGIES
1. Capacity Expansion:
A new manufacturing facility spanning 41,903 sq. ft. is under construction at Model Economic Township (MET), Jhajjar, Haryana, aimed at assembling Home UPS systems, solar inverters, PCUs, and charge controllers. Set to be operational in FY 2025–26, the facility will double production capacity from 600 to 1,200 units per day and integrate advanced manufacturing, R&D, and storage functions. It will also serve as a consolidated hub for relocating the registered office and streamlining operations.
2. Backward Integration:
To reduce dependency on external suppliers and improve quality control, the company plans to initiate in-house manufacturing of lead-acid batteries, a critical component of power backup systems. This move complements current operations, which primarily involve procurement and supply of inverter batteries.
3. Geographic Expansion:
A strategic focus on expanding domestic and international presence is in place to diversify revenue streams, reduce regional concentration risks, and support sustainable long-term growth.
BUSINESS RISK FACTORS & CONCERNS
1. Geographic Concentration Risk
A substantial share of revenue is generated from Haryana and Uttar Pradesh, making the business susceptible to regional economic downturns, regulatory changes, natural disasters, and market saturation. Sustained improvement in power infrastructure in these regions may also reduce product demand.
2. Supplier Dependency Risk
The company relies on third-party suppliers for raw materials used in Home UPS systems and Solar Inverters/PCUs. Any failure in supply, substandard quality, or delays could adversely impact production, financial performance, and operational continuity, despite having multiple supplier arrangements in place.
3. Product Dependency Risk
Revenue is significantly dependent on Home UPS systems, Solar Inverters/PCUs, and batteries. A drop in demand, market disruption, or supply issues for these products could materially impact revenue and profitability, as over 70% of the current assembly capacity is dedicated to these offerings.
4. Export Market Concentration Risk
A major portion of export revenue comes from Nigeria and West Africa. Any changes in foreign policies, trade regulations, or import-export restrictions could disrupt international operations, increase costs, or limit market access.
Smarten Power Systems faces key business risks from regional revenue concentration, supplier dependence, limited product diversification, and export market exposure, particularly in West Africa. These factors could affect the company’s operational stability, growth, and financial performance if not effectively managed.
